At the original exchange rate an import quota
a. creates a surplus in the market for foreign-currency exchange, so the exchange rate rises.
b. creates a surplus in the market for foreign-currency exchange, so the exchange rate falls.
c. creates a shortage in the market for foreign-currency exchange, so the exchange rate rises.
d. creates a shortage in the market for foreign-currency exchange, so the exchange rate falls.
c
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________ is the change in market value of capital over a given period
A) Accounting depreciation B) Implicit rental rate C) Economic depreciation D) Accounting implicit rental cost
If a country begins allowing free international trade in a good, and as a result, it increases imports of that good
a. domestic producers gain more than domestic consumers lose. b. domestic producers lose more than domestic consumers gain. c. domestic consumers gain more than domestic producers lose. d. domestic consumers lose more than the domestic producers gain.
The simple leverage ratio is defined as:
a. Depreciation of an asset / Value of an asset b. Current assets / current liabilities. c. Equity of an asset / Value of an asset d. Value of an asset / Equity of an asset. e. Equity of an asset / Original cost of an asset.
Table 1.1 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.1Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)S0NA10 T1 9 U2 7 V3 4NAThe highest opportunity cost anywhere in Table 1.1 for Stealth bombers in terms of B-1 bombers is
A. 0.5 B bombers B. 3 B bombers C. 2 B bombers D. 1 B bombers